By on March 3, 2008

sage_vaughn_xb_02-copy.jpgTTAC reviewer Paul Niedermeyer slated the new, heavier, less fuel efficient, gansta-riffic xB as "a blot on Toyota’s relatively unblemished copybook." The other models aren't setting the world on fire and face new competition, from within and without ToMoCo. No wonder, then, Automotive News [AN, sub] reports that Scion sales have dropped for 16 straight months. "Since August, monthly sales have declined from each previous month, even though dealers have had two redesigned models in their showrooms during that period." Product isn't the only problem. Taking a cue from The Big 2.8, Scion has over-dealered. "Scion had 856 dealers as of Jan 1, 2005. But as sales soared in 2005 and 2006, more dealers piled on, even if they weren't in hip, urban neighborhoods. Currently, 963 of 1,224 Toyota dealers carry the brand." ToMoCo says they mishandled the old to new model changeover. And never mind, anyway. "Sure, we'd like to see more customers," ToMoCo prez Lentz admits. "but we're still seeing the right customers. The tC's average customer is under 25 years old. The overall Scion customer is in his early 30s, and primarily he is new to the brand… As we hit spring, I think we'll see some good sales results." Even at Toyota, hopes springs eternal.

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12 Comments on “Toyota’s Scion Struggles for Sales...”


  • avatar
    RayH

    My theory behind the new look/heft is to cannibalize sales at the expense of the elderly… my observation with the the original box was at least 50% middle-aged/elderly drivers. That figure was higher with the xa, maybe 75% older. I can’t help but think they were cannibalizing Toyota’s own sales.
    I’ve only seen two new xB’s so far, both driven by elderly folks. Toyota wants the young hipsters in this thing, damnit! Those old folks need to be buying a Yaris, Matrix, or Corolla!

  • avatar
    SherbornSean

    I don’t think that Scions’ size is increasing for any other reason than the fact that the safety levels inherint to most small, light cars is inconsistent with Toyota’s brand.

    Have you seen the safety tapes of the original xB’s side impacts? Not good.

  • avatar
    SherbornSean

    Scion’s problem is that the brand is in the wrong business. The fashion business is set up for new product every season to ride whatever trend is hot. Cars take 4 years to develop. Which means that whatever comes out this year was conceived before people heard of Facebook, texting or Google.

    Where’s the brand that’s about lasting value? Who will come out and say “Trends come and go, but our cars are built to stay.” “These are the seats that will still be comfortable when you hit 300,000 miles. These are the controls that will feel as right in 20 years as they do today.” “This is the drivetrain that will get your kids to school without incident from Kindergarten to grad school.”

    I would pay a lot of money for that car.

  • avatar
    ttac2000

    A brand with so few models will always be boom or bust.

    tC – nice car at the price point. Needs a big refresh.

    xB – everyone who wanted one bought the first one.

    xA / xD – Nice subcompacts, but competition in this segment has heated up since the initial xA (Fit and Toyota’s own Yaris come to mind).

    Toyota’s goal with Scion was to bring the younger demographic over to Toyota. I think that they’ve suceeded, but they really need to keep the lineup fresh and on the cutting edge. Not easy in a long lead time business like cars.

  • avatar
    Blunozer

    If Toyota had the brains to sell Scion in Canada they would fly off the lots here. Us Canucks actually like small cars.

    I guess we’re not “hip and trendy” enough.

  • avatar
    OldandSlow

    Sales will tank even further when the redesigned Honda Fit arrives in 2009. Scion’s exterior sheet metal grows tiresome pretty quick. The previous generation Mini is still more hipper than what they got.

  • avatar
    BostonTeaParty

    It was a phenomenon that has past like fashion styles that come and go. Is Scion the shell suit of the 00’s. The thing with Scion they were always driven by old folks, never saw anyone under 60 in one, definate target market there Toyota. Maybe thats the problem the young and hip didn’t want to be seen driving with Grandma and maybe the other issue of dying sales is just that, the market is dying off as its customers got so old?!

  • avatar
    tulsa_97sr5

    So if Toyota does at some point to end the Scion experiment what’s the financial impact? I would think it would be a lot less than killing off Mercury or Pontiac since the toyota dealers would pretty much just reclaim that floor space no?

  • avatar

    The problem seems to have ocurred when the 1st generation Xb production stoped. It will be interesting to see if Toyota admits its mistake and goes back to someing more like the original xb.

  • avatar
    Johnson

    Some food for thought …

    xB sales were UP in January.

    xD sales were a hair close to xA sales in January.

    tC sales were down considerably in January.

    Its quite obvious that Scion needs a tC replacement. xB and xD sales look fine.

  • avatar
    CarShark

    @Johnson

    I concur. Granted, this is just one month, but if small car sales continue to grow I can see Scion blossoming again in the near future.

    BTW, I still hate the new xB. What a pig.

  • avatar
    Johnster

    I love the xD Pickup conversion shown in the picture. It looks like an update of an old English ’50s or ’60s Morris or something.

    Maybe Scion needs to go after the agricultural market, since the over-sized Tundra isn’t selling quite as well as Toyota had hoped.

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